What does it imply for bitcoin if China orders more crypto crackdowns and bans mining?
CHINA has ordered fresh cryptocurrency crackdowns, with mining the virtual currency now prohibited in Beijing’s latest measure. But what does this indicate for bitcoin’s future prospects?
According to a government document released on Wednesday, China’s Qinghai province has declared a ban on virtual currency mining operations. Qinghai is China’s second coal-based crypto mining hotspot to close, perhaps putting the entire industry out of business. The announcement came after another notification of a crackdown on crypto miners in Xinjiang, and after Inner Mongolia had previously put limitations on miners.
The paper declaring the process over was issued by the provincial government’s Qinghai Industry and Information Technology Department.
The central government in Beijing was concerned about high energy-consuming enterprises and environmental degradation, according to Qinghai authorities.
Another reason for getting rid of crypto in the province was the State Council’s mandate to protect financial stability by cracking down on crypto mining and trade.
Depending on the season, bitcoin miners in China utilize a combination of coal and hydroelectric electricity to run their mines.
The usage of coal in particular has piqued the interest of China’s government, which is attempting to limit its carbon footprint.
From May, the State Council of China, one of the country’s highest governing entities, directed local governments to tighten down on crypto mining.
The Chinese government has been moving in this direction for some time, with steps being implemented in Inner Mongolia in April and Sichuan, another mining powerhouse, indicating that it may discontinue a local energy policy that miners in the area had taken advantage of.
Elon Musk, the CEO of Tesla and SpaceX, recently joined the crypto crackdown by announcing that his electric car company would no longer accept bitcoin as a payment mechanism.
As things stand, the Chinese government’s relentless crackdown on bitcoin is unlikely to spiral out of control.
Despite the news from Qinghai, the crypto’s value is $37,612.60 (26,682.76) at the time of writing, up 6.49 percent in the last 24 hours, according to accordion got coin desk.
“The volatility of bitcoin is molded by successive restrictions and legislations,” Yves Renno, Head of Trading at Wirex, told This website.
“This week, we saw China tighten its grip on bitcoin and El Salvador declare it a.”Brinkwire Summary News”.